Bitcoin (BTC) Addresses in Loss Plumment to Historic Loss; But There’s a Catch
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HOMECRYPTO NEWSBITCOIN (BTC) ADDRESSES IN LOSS PLUMMENT TO HISTORIC LOSS; BUT THERE’S A CATCH
Bitcoin (BTC) Addresses in Loss Plumment to Historic Loss; But There’s a Catch
Chayanika Deka
Mar 1, 2024 14:31
Experts suggest that Bitcoin may see a retraction before hitting a new peak.
Bitcoin (BTC) Addresses in Loss Plumment to Historic Loss; But There’s a Catch
In a major milestone, Bitcoin rallied past $63,000 this week before retreating to the press time price of around $62,000. Over the past month, the asset has recorded an impressive 46% gain as it edged closer to surpassing its previous all-time high.
Despite the massive bullish momentum, the chances of correction depict a cautionary tale.
Bullish Rally Pushes BTC in Loss to Historic Lows
The latest surge in the price of the leading crypto asset has propelled a significant number of Bitcoin addresses into profitable territory, marking a historic low for addresses in loss.
Corroborating this trend, CryptQuant’s latest analysis revealed that during bullish phases, the majority of Bitcoin’s circulating supply sits in unrealized profit while losses are minimized. Conversely, during bearish periods, the circulating supply tends to suffer from unrealized losses.
This pattern suggests the possibility of identifying market tops or bottoms, as market behavior often repeats itself, forming recognizable patterns. However, with the indicator currently residing in the extreme region of the distribution, the risk of significant price corrections looms large.
Since the U.S. Securities and Exchange Commission greenlit several spot Bitcoin exchange-traded funds (ETFs) last month, investors have been caught up in a whirlwind of activity. But correction concerns continue to surface.
A similar sentiment was shared by Daniel Yan, co-founder of Singaporean crypto services firm Matrixport, who said that a market correction is imminent and even forecasted a healthy retracement of nearly 15% by the end of April.
Yan highlighted the complexities of the macroeconomic landscape, particularly in March, while referring to notable events such as the United States Federal Reserve’s forthcoming meeting, the Bitcoin halving, and Ethereum’s Dencun upgrade as factors contributing to this cautious outlook.
Mike Novogratz Chimes In
Galaxy Digital CEO Mike Novogratz cautioned Bitcoin investors about a potential drop before rallying to record level. In a recent Bloomberg TV interview, the crypto investor said that Bitcoin might retract to the mid-$50,000 range amid a broader consolidation phase before surging to a new high.
“I wouldn’t be surprised to see some correction and some consolidation, but I’m very loath to pick a Bitcoin high because I really do believe this is price discovery.”
Novogratz noted that the ETFs have attracted additional retail investors, who are engaging in trading with an unsustainable level of leverage. He cautioned that many individuals, particularly millennials and Gen Z traders, who are pursuing high returns could face significant losses.
However, looking ahead, Novogratz believes that the accumulation of wealth from baby boomers investing in these funds will drive Bitcoin to much higher levels over time, potentially surpassing its 2021 peak of approximately $69,000.
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Chayanika Deka
Chayanika has been working as financial journalist for five years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin
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Bitcoin (BTC) PriceMike Novogratz
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Bitcoin Is Back—How Long Will This Bull Run Last?
After a big week for Bitcoin, some are looking beyond the next all-time high to ask whether the good times will last.
By Mat Di Salvo
3 min read
Mar 1, 2024
Bitcoin continues to soar, and has flitted just 11% away from touching its all-time high of $69,044. It certainly feels like a bull run—but how long will that feeling last?
To be sure, crypto Twitter has opinions. This cycle will be shorter than previously, the chattering class opines, but experts are torn.
The biggest digital coin by market cap is now trading for $61,323, having risen by 43% over the past month, as it stood at $42,172 at the start of February, according to CoinGecko. It’s now hitting highs not reached since 2021.
“I think most are surprised at how quickly crypto has run in the past four weeks,” Patrick Felder, Prismatic Capital founder and CIO, told Decrypt.
He continued that “these parabolic rallies typically see 20 to 30% pullbacks” with major cryptocurrencies such as Bitcoin, “but knowing or guessing when is impossible.”
Felder also noted that metrics such as weak Google searches for Bitcoin, the low ranking for Coinbase in mobile app stores, and altcoins still far from their all-time highs point to us being early in a bull run. This cycle is also different due to the approval of spot BTC ETFs.
Meanwhile, Saxet Infrastructure Group co-owner Ro Shirole told Decrypt that the duration of cycles is unlikely to change. Instead, the floor will be raised this time due to a “resurgence in institutional interests.”
This bull run is different because institutional money has flooded into the space with the approval of spot BTC ETFs, Shirole asserted, adding that the upcoming Bitcoin halving was a factor.
“If the supply is indeed cut every four years, inevitably the value should continue to rise over time if tried and tested economic theories hold up,” he explained.
The halving, set to take place next month, will see miners’ rewards slashed in half. Some claim that this is a bullish indicator for the biggest digital coin: data shows that the price of BTC has always risen significantly following each prior event—albeit many months after.
“I think each halving there are different macro factors which contribute to volatility on both sides of the halving,” Shirole said. “However I personally feel the general trajectory over the course of the next 12-18 months is quite bullish based upon historic trends.”
There are other things to take into account this time, however, such as the Federal Reserve’s next steps with interest rates.
Edited by Ryan Ozawa.
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